Pimco’s Gross Forecasts U.S. Growth at 1.5% Over Decade

Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., forecasts real growth in the U.S. will be about 1.5 percent a year for at least the next 10 years.

Slower labor-force expansion, overextended credit and potential geopolitical or environmental shocks will limit growth as the economy struggles to duplicate previous productivity gains, Gross said in a July 11 telephone interview.